VNOM Earnings Prediction
The chart below shows how VNOM performed 10 days before and after its earnings report, based on data from the past quarters. Typically, VNOM sees a +0.29% change in stock price 10 days leading up to the earnings, and a +1.80% change 10 days following the report. On the earnings day itself, the stock moves by -0.57%. This data can give you a slight idea of what to expect for the next quarter's release.
VNOM Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
209.59M
-28.53%
-3.29%
Gross Margin
66.77%
-19.98%
-5.52%
Operating Margin
64.68%
-21.88%
-5.65%
Net Margin
52.03%
-26.37%
-7.75%
EPS
0.52
-53.15%
-16.13%
No Data Available
VNOM Earnings Analysis
Viper Energy, Inc. Class A Common Stock Corporation (VNOM.O) Earnings Conference Call
Positive
Production Increase Forecast: 1. Increased Production Guidance: Viper Energy anticipates a production increase to 29.5 BO per day in Q4 2024, driven by a significant step-up in work-in-progress wells, particularly from Diamondback's operations.
Acquisition Impact on Growth: 2. Successful Acquisition: The completion of the Tumbleweed acquisition has added approximately five to six net wells to Viper's portfolio, enhancing future production growth prospects.
Shareholder Distribution Commitment: 3. Strong Shareholder Returns: Viper Energy declared a distribution of 83% of cash available for distribution in Q3 2024, exceeding the minimum commitment of 75%, reflecting a commitment to shareholder returns.
S&P MidCap 400 Addition: 4. S&P MidCap 400 Inclusion: Viper was added to the S&P MidCap 400 in September 2024, following its addition to the Russell 1000, indicating improved market presence and investor interest.
Merger Growth Potential: 5. Strategic Growth Opportunities: The merger between Diamondback and Endeavor is expected to enhance Viper's growth visibility and operational alignment, providing a strong foundation for future acquisitions and development plans.
Negative
Leverage Concerns Rising: 1. Increased Leverage Concerns: Viper Energy indicated a potential increase in leverage to 1.5 turns on a pro forma basis, raising concerns about financial stability amidst ongoing acquisitions.
Share Dilution Impact: 2. High Share Dilution: The company issued a significant number of shares for the Tumbleweed acquisition, resulting in an 83% payout of cash available for distribution, which is 8% higher than their usual minimum commitment of 75%.
Dividend Payout Adjustment: 3. Unique Q3 Dividend Adjustment: The third quarter's dividend payout was adjusted to 83% due to the addition of 10 million shares, indicating potential volatility in future distributions as they stabilize post-acquisition.
Future Production Uncertainty: 4. Uncertain Future Production Growth: Despite a strong pipeline of work-in-progress wells, the company has not provided clear visibility on how the Endeavor merger will impact future production growth, leaving investors uncertain about long-term output.
Debt Management Concerns: 5. Potential for Increased Debt: The management acknowledged the need for a modest increase in debt to fund the Endeavor drop-down, which could strain financial resources if not managed carefully.
VNOM FAQs
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VNOM Earning Call Sentiment
Viper Energy, Inc. (VNOM) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
VNOM.O
4.44%Positive
The earnings call summary presents a positive outlook with increased production guidance, strong cash flow, and an 11% dividend increase. The Q&A section highlights growth prospects from new wells and acquisitions, despite some uncertainties in funding details. The strategic initiatives and market presence enhancements further support positive sentiment. The market cap suggests moderate volatility, aligning with a positive stock price prediction of 2% to 8% over the next two weeks.
